Oil pares advance despite drop in US crude inventories

Oil pares advance despite drop in US crude inventories

Oil pared its earlier gains on Wednesday despite the release of a report showing a drop in U.S. crude stockpiles last week. 

The Energy Information Administration (EIA) report signaled a drop by 1.0 million barrels in U.S. crude inventories in the week ended April 14, following a 2.2 million-barrel decrease a week earlier.

U.S. crude stocks were down 4.5 million barrels last week, according to industry report released by the American Petroleum Institute (API) late Tuesday.

A report due on Friday by oilfield services company Baker Hughes will provide an update on the number of rigs drilling for oil in the United States.

Crude oil futures for June delivery resumed its plunge for a third straight session to $52.71 a barrel after hitting a high of $53.02.

Brent crude futures plunged to $54.77 a barrel, falling from a peak of $55.17.

Ahmed Mamdouh

Ahmed Mamdouh, Co-Founder and Head of English Fundamental Analysis at FXComment.com, with 7 years of experience in the financial markets. Mamdouh holds a Master’s Degree in Economics from The American University in Cairo and a Bachelor Degree in Economics from The Faculty of Economics and Political Science, Cairo University.

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